Petra Diamonds has entered into a conditional agreement with De Beers Consolidated Mines to acquire the mining and associated assets previously used by De Beers in the operation of the Kimberley Underground diamond mines, which are situated near Kimberley, South Africa. Petra is to acquire the mining and associated assets of the Wesselton, Du Toitspan and Bultfontein mines (together the Kimberley Underground mines) from De Beers for a total consideration of R78.5 million. It will run the mines on a care and maintenance basis on behalf of De Beers until all required mining authorisations are received from the South African authorities. Based on historical production and sales information, Petra expects annual sales from Kimberley Underground in excess of 100,000 ct at an average of $160/ct once full production is recommenced, giving gross annual revenues in excess of $16 million and a life of mine of at least 12 years

Adonis Pouroulis, Petra’s Chairman commented “Alongside Petra’s highly prospective Angolan exploration assets the acquisition of Kimberley Underground is an important addition to Petra’s substantial base of producing assets in South Africa. Together Kimberley Underground, Koffiefontein and Petra’s fissure mines will contribute annual production in two years time of around 400,000 ct.”